The ADA price has jumped 7.7% this morning, fueled by the news that shoppers could soon use the Cardano coin for their Amazon purchases.
Cardano (ADA) is trading at $1.3230, increasing almost 13% in the last seven days.
Positive sentiment had started to return to the cryptocurrency market over the last week. However, this weekend’s revelations that Amazon (NASDAQ: AMZN) is aiming to fast-track Bitcoin payment options by the end of the year adds another bullish catalyst just when the market needed it most.
Furthermore, when speaking to financial newspaper City AM, an insider at Amazon, said once the retailer has mastered BTC, Cardano transactions may come next.
“Ethereum, Cardano and Bitcoin Cash will be next in line before they bring about eight of the most popular cryptocurrencies online.”
The ADA price action from last week’s dip to $1.0073 is looking increasingly constructive. After reversing from the support of a major trend line, the rally in the second half of last week lifted Cardano above the 200-day moving average. Furthermore, if ADA ends the day here, it will have broken out of its recent downtrend.
This could set the scene for the next leg higher.
Cardano price forecast
The daily chart shows several positive developments for the ADA price.
Firstly, a robust trend line is visible at $1.0200. This support has proven the floor price in five significant sell-offs over the last 5 months. An average price increase of 104% followed the four previous tests of the support. Therefore, the bulls will be hoping the 30% jump from last week’s touch is just the start.
This led me to claim in last week’s report that “The Cardano low may be in”.
Secondly, this morning Cardano climbed above the 50 DMA at $1.3459 and should the momentum carry forward this afternoon may well close above this indicator. This would leave the 100 DMA at $1.4497 as the last major moving average to be cleared.
Notably, the price has also broken out of a descending triangle formation from the May high. This contributes to the bullish outlook and should be viewed as an extremely positive development.
Additionally, the Relative Strength Index is trending higher, which reinforces the positive momentum.
However, so far today, the trading volume is light. Although, I expect activity to increase when the European and US markets come online later today.
Considering the positive news flow, traders are likely to chase the ADA price higher. And should Cardano hurdle the 100 DMA, the bulls can make a strong argument for it to extend to $1.89000. Furthermore, a continuation of strength in the broader market would make a new all-time high achievable.
The bullish outlook remains intact as long as ADA remains above the descending trend line at $1.2130 and the 200 DMA at $1.1755.